The idea of combining tanker and AWACS makes no sense to me. It reminds me of E-10 project which aimed to be simultaneously an E-3, an E-4, an E-8, and an RC-135. Why was it abandoned? Because of the differences in mission profiles, you would still need as many aircraft as before anyway, but now each aircraft is that much more expensive because they have capabilities that they do not need for their mission.

Boeing on Wednesday disclosed more bad news on the KC-46 program: The company will have to eat another $329 million as a result of cost overruns.

Under the terms of its fixed-price deal with the U.S. Air Force, Boeing must pay out of pocket for any expenses over the $4.9 billion contract value. That agreement has been a tough pill for Boeing to swallow, as the company has now had to cough up about $2.9 billion in pretax fees — or about $1.9 billion after tax — as delays and cost overruns mount.

There are signs another missed milestone may be on the way.

Over the past year, Boeing has remained adamant that it can deliver the first KC-46 aircraft by the end of 2017 — although the Air Force believes it will be later, likely next spring.

Asked by Defense News whether the company still believes it can hit that deadline, Boeing spokesman Chick Ramey demurred.

“We’re working with the Air Force on the schedule and expect to deliver the first 18 tankers in 2018,” he said. Regarding a contractual obligation to deliver 18 certified KC-46s and nine refueling pods, “we remain on track for late next year.”...